Permissions

I have two vhosts setup each using the DocRoot UID setting so that scripts run under the user which owns the directory. The problem I'm having is allowing user1 to access a file in user2 directory. Below is what I'm using in my /etc/groups file. Each the directories are chmod 770

user1:x:1000:lsws
user2:x:1001:lsws,user1

Based on this setup user1 should be able to gain access to user2 files. However, I'm getting permission denied? Yet if I assign the lsws user owner of user1 files it seems allow it to access user2 files.

I'm wondering if LiteSpeed when reading the directory/file and when using DocRoot UID does it consider the additional groups?